Hudson Technologies reported a significant third quarter miss on both top and bottom lines, with revenue declining 20% year-over-year. The results were primarily driven by a 17% decrease in selling prices and a 9% decline in sales volume, reflecting continued softness in the hydrofluorocarbon (HFC) market and muted customer demand compared to 2025's supply-constrained environment.
Key Highlights
- Gross margin contracted to 25% from 32% in the prior-year period, primarily due to the 17% drop in refrigerant market pricing.
- Operating expenses increased to $11.5 million from $9.7 million, reflecting investments in a new ERP system and additional staffing for long-term initiatives.
- The company maintains a debt-free balance sheet with $35.3 million in cash and was recently re-awarded a DLA contract valued at $210 million.